10% Owner Of Power Solutions Intl Makes $1.61M Sale

Making a noteworthy insider sell on December 30, Gary S Winemaster, 10% Owner at Power Solutions Intl PSIX, is reported in the latest SEC filing.

What Happened: After conducting a thorough analysis, Winemaster sold 56,729 shares of Power Solutions Intl. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total transaction value is $1,614,675.

In the Tuesday's morning session, Power Solutions Intl's shares are currently trading at $31.99, experiencing a up of 5.58%.

Unveiling the Story Behind Power Solutions Intl

Power Solutions International Inc is an America-based company that manufactures, distributes, and services power systems that primarily run on nondiesel fuels, including natural gas, propane, and gasoline. The company's products are designed to meet emission standards imposed by environmental regulatory bodies like the Environmental Protection Agency. Its products are distributed to a wide range of industrial original equipment manufacturers that supply equipment to sectors including power generation, oil and gas, material handling, airport ground support, agricultural, turf, construction, and irrigation. The company generates most of its sales from United States.

Understanding the Numbers: Power Solutions Intl's Finances

Revenue Growth: Over the 3 months period, Power Solutions Intl showcased positive performance, achieving a revenue growth rate of 8.59% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Insights into Profitability:

• Gross Margin: The company maintains a high gross margin of 28.94%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Power Solutions Intl's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.75.

Debt Management: Power Solutions Intl's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.85, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 12.78 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.6, Power Solutions Intl's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Power Solutions Intl's EV/EBITDA ratio, surpassing industry averages at 10.98, positions it with an above-average valuation in the market.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Why Insider Transactions Are Important

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Unlocking the Meaning of Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Power Solutions Intl's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.